Jordan Goodman America, Jordan Goodman, Treasury discussed on The John Batchelor Show


With jordan goodman america's money answers man what's about a time interest rates were sky sky high well into the double digits back in the jimmy carter era some forty years ago and then they came down and down and down and way down and they've been really way down for a long long time then they began to sort of bubble up a little bit but but no big deal and now jordan goodman what are they are they really waking up what's happening i yes there are so today the ten year treasury went up to two point nine five percent which is the highest it's been in a long time it had been a year ago maybe two percent a little bit lower than that and it's going up traveling i think it's going to go through three percent maybe up to three and a half percent at this year so some reason that's happening jim first of all the treasury is barring a huge amount of money to cover the deficits now it's wonderful we have the tax cut and helps the private sector but it means the government is collecting less tax revenue and they just had a big spending bill remember on top that they of the three hundred billion to the spending bill so we're doing less revenue more spending bigger deficits and that means the treasury has to cover it they're gonna issue well over one trillion dollars in new debt this year so that's putting upward pressure on interest rates because the fed the treasury just keeps putting out more and more debt all the time these auction that's the first thing and the economy in general is doing better meaning more demand for loans and also inflation is going up in various ways and one of the specific reasons that recently made inflation go up is the steel and loom tariffs of twenty five percent on steel and.

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